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Shift Income to Take Advantage of the 0% Long-Term Capital Gains Rate
Are you thinking about making financial gifts to loved ones? Would you also like to reduce your capital gains tax? If so, consider giving appreciated stock instead of cash. You might be able to eliminate all federal tax liability on the appreciation — or at least significantly reduce it. Leveraging lower rates Investors generally are [...]
How Market Volatility May Affect Valuation Discounts for Lack of Marketability
When determining how much a business is worth, a valuation professional must evaluate current market conditions — and today’s marketplace is full of uncertainties. Top concerns among business leaders in the third quarter of 2025 included tariffs, monetary policy, inflation and the availability of skilled workers, according to The CFO Survey, a collaboration of Duke [...]
What You Need to Know About Deducting Business Gifts
Thoughtful business gifts are a great way to show appreciation to customers and employees. They can also deliver tax benefits when handled correctly. Unfortunately, the IRS limits most business gift deductions to $25 per person per year, a cap that hasn’t changed since 1962. Still, with careful planning and good recordkeeping, you may be able [...]
How the Social Security Wage Base Will Affect Your Payroll Taxes in 2026
The 2026 Social Security wage base has been released. What’s the tax impact on employees and the self-employed? Let’s take a look. FICA tax 101 The Federal Insurance Contributions Act (FICA) imposes two payroll taxes on wages and self-employment income — one for Old-Age, Survivors, and Disability Insurance, commonly known as the Social Security tax, [...]
Valuation is the Foundation of Every Sale-Ready Business
Are you thinking about selling or merging your business? In September 2025, the Federal Reserve Bank lowered its benchmark rate by 0.25% and hinted at possible additional rate cuts in the coming months. Lower rates, combined with favorable tax law changes, could spark the merger and acquisition (M&A) market as we head into 2026. Even [...]
Is an HDHP Plus an HSA a Financial Smart Health Care Option for You?
Health care costs continue to increase. Pairing a high-deductible health plan (HDHP) with a Health Savings Account (HSA) can help. Insurance premiums will be lower because of the high deductible. And the HSA provides a tax-advantaged way to fund the deductible and other medical expenses. 5 HSA tax benefits HSAs offer both current and future [...]
Year-End Tax Planning for Accrual-Basis Taxpayers
Year-end is a good time to review your business’s expenses for deductibility. Accelerating deductible expenses into this year generally will reduce 2026 taxes and might even provide permanent tax savings. Also consider the impact of the One Big Beautiful Bill Act (OBBBA). It makes permanent or revises some Tax Cuts and Jobs Act (TCJA) provisions [...]
Keep Packages Safe From Theft This Holiday Season
In 2024, a whopping 22.4 billion parcels were shipped in the United States, according to shipping management vendor Pitney Bowes. The average American received 78% more packages in 2024 than in 2017 (growth fueled primarily by online purchasing). And this total is expected to climb even higher in 2025. Many consumers and businesses have already [...]
The 2025 SALT Deduction Cap Increase Might Save Your Substantial Taxes
If you pay more than $10,000 in state and local taxes (SALT), a provision of the One Big Beautiful Bill Act (OBBBA) could significantly reduce your 2025 federal income tax liability. However, you need to be aware of income-based limits, and you may need to take steps before year end to maximize your deduction. Higher [...]
Stop Fraud at the Front Door
Small businesses often rely on a few trusted employees to be the first people customers encounter — not to mention, the primary ones to collect payments and sensitive data. For example, the front desk is usually the nerve center for dental offices, fitness studios, small hotels and retail boutiques. Although front desk employees can build [...]
Should Your Business Maximize Deductions for Real Estate Improvements Now or Spread Them Out?
Commercial real estate usually must be depreciated over 39 years. But certain real estate improvements — specifically, qualified improvement property (QIP) — are eligible for accelerated depreciation and can even be fully deducted immediately. While maximizing first-year depreciation is often beneficial, it’s not always the best tax move. QIP defined QIP includes any improvement to an [...]
Treasury and IRS Provide Transitional Relief for 2025 for Businesses Reporting Car Loan Interest Under OBBBA
As appearing in IR-2025-105 On 10/21/25, the Department of the Treasury and the Internal Revenue Service provided transitional guidance for businesses required to report car loan interest under the One, Big, Beautiful Bill Act (OBBBA). Notice 2025-57 provides penalty relief and guidance to certain lenders for new information reporting requirements for car loan interest received [...]
Boost Your Tax Savings by Donating Appreciated Stock Instead of Cash
Saving taxes probably isn’t your primary reason for supporting your favorite charities. But tax deductions can be a valuable added benefit. If you donate long-term appreciated stock, you potentially can save even more. Not just a deduction Appreciated publicly traded stock you’ve held more than one year is long-term capital gains property. If you donate [...]
How Financial Statements Unlock Business Value
As calendar-year entities start work on their year-end financials, it’s important to remember that financial reporting is about more than compliance. Financial statements also help business owners make better-informed decisions — and they provide a wealth of data to assess business value. Here’s a look at three key reports and how business valuation pros use [...]
There’s Still Time for Businesses to Benefit from Clean Energy Tax Breaks
The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, extends or enhances many tax breaks for businesses. But the legislation terminates several business-related clean energy tax incentives earlier than scheduled. For example, the Qualified Commercial Clean Vehicle Credit (Section 45W) had been scheduled to expire after 2032. Under the OBBBA, it’s available [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
